Atmos Energy Corporation stock research
FY2023 Q3
Atmos Energy (ATO) Gross Margin — Quarter Ended Jun 30, 2023
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Cost of revenue declined substantially from both periods, resulting in a gross margin that improved significantly versus both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q3
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Cost of revenue declined substantially from both periods, resulting in a gross margin that improved significantly versus both the preceding quarter and the year-ago quarter.
- The strongest observable margin driver is the sharp reduction in cost of revenue relative to revenue, which lifted gross margin to a higher level than in either comparison period.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but cost of revenue was substantially lower, leading to a higher gross margin. Versus the same quarter one year earlier, revenue was lower, gross profit was higher, and cost of revenue was lower, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
93.3%
Gross profit
$618.2M
Revenue
$662.7M
Cost of revenue
$44.5M
Quarter-over-quarter change
+36.5 pts
Year-over-year change
+23.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.5B | $874.8M | $666.2M | 56.8% |
| Jun 30, 2023 | $662.7M | $618.2M | $44.5M | 93.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+36.5 pts
Year-over-year change
Jun 30, 2022
+23.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sharp reduction in cost of revenue relative to revenue, which lifted gross margin to a higher level than in either comparison period.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but cost of revenue was substantially lower, leading to a higher gross margin. Versus the same quarter one year earlier, revenue was lower, gross profit was higher, and cost of revenue was lower, resulting in a higher gross margin.
Monitor whether the lower cost of revenue level persists in future quarters, as it was the primary factor behind the margin improvement.